You can set up a 401k plan under the category of Retirement Plans.
- Minimum election amount: The minimum the employee must contribute per year
- Maximum % of employee salary: The max percent of the employee's salary the employee can contribute each year
- Pre/Post Tax Contributions: Give the employees the option to select a tax option. If you do not want an option to be selected, set both to "No".
- Capture or Require beneficiary information: If you'd prefer the employee add their beneficiary for 401k.
IRS limits will be calculated based on the enrollment effective date.
Limitation: Currently, Retirement Plans cannot be copied.
Are employer contributions supported for 401K?
At this time, employer contributions cannot be configured in the plan setup. Employer contributions can be added as a fringe benefit to appear on the employee's Total Compensation Statement. For more information, see Fringe Benefits
Can 401K enrollments be imported?
No, 401K enrollments cannot be imported. A workaround to this would be to build the plan under the Universal plan model to allow enrollments to be imported. Building as a Universal plan will also allow you to add the employer contributions. The employee's contribution would be added as the "Employee Cost" and the employer's contribution would be added as the "Company Cost". The limitation to this setup is only a monthly amount can be entered. Percentages, per pay, and annual contributions would need to be calculated outside of the system.
Are 401k plans supported by life events?
No. Mid-year changes would need to be performed by an admin user. The enrollment would need to be ended via the Enrollment Editor. The contribution can then be changed in the Modify Current Enrollment window. Don't forget to backdate the election to the appropriate date of the change.